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Administration January 16, 2008
Hewitt Reveals Sale of Payroll Services Vendor
January 16, 2008 (PLANSPONSOR.com) - Hewitt
Associates announced on Wednesday that it is selling its
Cyborg business, a payroll and HR software services vendor
acquired in 2003, to a private equity firm.
Reported by Fred Schneyer
A Hewitt news release said the terms of the deal with Vista Equity Partners were not disclosed. Its Cyborg business provides licensed, processed and hosted payroll software services to a number of organizations in the U.S., Canada and the UK (See Hewitt Makes Another Outsourcing Move ).
Hewitt will continue to provide payroll services for its HR BPO clients and will continue to license the company’s software as the core platform for those clients and for certain Hewitt internal operations, according to the announcement.
“The acquisition of Cyborg in 2003 allowed Hewitt to gain some important experience in the payroll domain at a time when we needed to complete our suite of HR outsourcing services,” said Russ Fradin, chairman and chief executive officer of Hewitt Associates, in the announcement. “Going forward, end-to-end payroll services will continue to be a strategic element of our HR outsourcing offer as we build on the expertise gained from the acquisition and use it to continuously improve our comprehensive payroll solution for our large HR BPO clients.”
The transaction is expected to close during the company’s fiscal second quarter, subject to customary closing conditions.